The sun. [volume] (New York [N.Y.]) 1833-1916, 1887-10-16
THE PUBLIC TELEGRApHS.
THE EXTRAORDINARY ExrfNSION OF
THE WESTERN UNION.

luU i UDLlO lEhNJhAI uD.
TIE EXTRAORDINARY KxrxxsroN on
THE WESTERN UNION
TIE Remnant Of ppesitisu--Dverwhsirsin
Aggregation OF CapitsI-A Fair and who'll
~ Impartial Review OF the nituntion.
Prom Bradsreer.
The absorption Of the system Of telegraph
which had been erected under the auspices
and control OF tho Baltimore and Ohio Rail-
road Company by the Western Union Company
closes another OF tho attempts which have
been made from time TO time to maintain q
successful and permanent opposition to the
latter organization. In no country Of the CIV
ilized world has telegraphy made greater
strides In point Of scientific and mechanical
perfection than in tho United States. and in
none docs its use enter moro intimately into
the fabric Of the business and social lifo Of
the people. At the Same time tho history OF
telegraphy in the United States for years past
has been that Of this gigantic corporation and
Of the steps by which 1t has absorbed It's
competitors.
The most striking feature in connection with
the formation OF the Western Union Company
Is the immense addition to It's capitalization
which has followed each successive consolida-
ton, resulting before this last event In its hay
ing share capital Of $50. 0O0. 900. bonded debt
Of over $7000.0O0. and outstanding guarantees
upon the stock and bonds OF other cable and
telegraph companies amounting to say $25.-
000,0 00 or in all capitalization Of some S115,-
100000. Apart from the notorious fact Of
the extent to which what Is known
as water entered into these additions
to its capital, 1t may we'll be doubted
whether the compary's existing plant repro
sents anything like such q valuation. Form
ing. as 1t does according to the last report O
system OF 10000 miles Of poles. with $4,000
niilos Of wires. $4,000 offices, transmitting over
47000000 messages In year, and having gross
receipts OF $17.00O000. 1t constitutes concern
Of the greatest magnitude. and reaching. as It
does. almost every railroad station or hamlet
In the country, as well as all the important
centres Of population. its influence is moro
widespread than any other corporation.
The Baltimore and Ohio telegraph system
was an outgrowth Of that aggressive spirit
which characterized the management OF the
railroad company under the Characterization
and son-and which, carried to extremes. has
resulted in the present situation OF that prop
erty. Declining as a settled principle to turn
over the telegraph lines Of the road to the
Western Union COMPANY: and entertain I'm
Ing would 9bs
II the - msnsge%ens q sSs later. n tie
idea Of forming an extensive system OF
IL sG0fa ea Of T. tie @ sSs
which his son and successor carried Into eject.
The telegraph lines owned BY the baltimore
Chicago furnished the nucleus. and the build
Ing Of new lines to important cities resulted by
S s IL the an OF Ms
with the Western Union in biography between
nearly an the important Northern centres Of
Il the present time the Baltimore and Ohio
wrss s4tend fT9m Me- IN the North
owns Or controls about 1900 miles Of lines. in:
LOO o2tices. Exact reports Of the telegraph
tho Ss
about 1886 900. reports indicate that the on
tire advances made by the railroad amount to
sSgerated. Similarly little is Known Of tie re- re-
suits Of its operations. The statement has
ls Paas 1 1t rs s Is ossa s
some question. and there Is little doubt that
tho continued necessity Of . extension and the
under which ne Baltimore and Ohio Railroad
piTF Tie p policy Of the Western, Union Company
throughout the contest has been shaped with
view e such an Outcome ho The compsti91 Of
Was met at ali points. although the lowering Of
the country: in conjunction with the cable
rate war which has also been in progress for
%ssern nS as sss iS ID ss
abandonment Of dividends upon it's stock for
nearlv 2 vsaE I.u To some s.,, extent; there
tual in adding 70 the embarrassments Of the
Baltimore and Ohio: and so we'll was It's object
ss Nh a T9 as rsa %s ss6s
doubt existed IN any quarter as TO the ultimate
tween tho Western Union and the syndicate Is
not ald%y fe E fhe W and the
the Baltimore and Ohio Telegraph organiza-
ton. though q tangible increase Of the West
Of water as has been witnessed In former CON
solidations
Is to e no
Q reorganization Of the Bankers and Merchants
i3Portant Northern Cities. and With the Pos sa
Tel s system gan maintain an appreci-
Is controlied BY the same interest Which owns
sIssurssSss ss%sns r. esS!s ssSIius.|sss
rates. which, has oecasionsd losses s"v to
the Western Union quite as serious as any
far Efforts to make terms with the Comme rciai
Cable interest have been without result, and It
remains to be seen whether the loss Of the CO. |
operation of tho Baltimore and Ohio system |
will be o factor In facilitating settlement |
which will bring that concern, as we'll as the |
Postal Telegraph, under subordination to the |
Western Union interests. The feeling that |
such an outcome is probable, even though 1t |
may be a question Of some time, Is. however. q |
very prevalent one.
One OF the first considerations In connection |
with the situation thus created has reference |
TO the continuation OF competition. Expert |
ence In the past has been that the ABSORPTION |
OF one connection by the Western Union has |
uniformly been followed by the formation OF |
another. Results however, do not altogether |
encourage the further investment OF capital In |
such enterprises, while the extent to which |
facilities. particularly In connection with rail- |
roads Of the country, are occupied by Western
the formation Of rival concerns. At the same |
time the imitation Of Western Union capital |
has reached q point where 1t can readily be |
seen that 1t can Ill afford to indulge In further
expansion In order to absorb Its Competitors.
Al Of this has doubtless been Gully weighed
by the interest controlling WesternUnion, and, |
in view OF the comparatively feebleopposition |
which the Postal and United Lines land wires
are able to offer 1t, steps are apparently In
progress toward placing the rates, which the |
Baltimore and Ohio's competition hadreduced,
upon a more remuneratlve basis. would,
howayar seem that recovnition ha ham ,riyar,